(Sorry, we do not offer this bond for shorter terms)
The California Tax Preparer Surety Bond is required by the California Tax Education Council.
In order to do business in the State of California, tax preparers must have this bond on file with the California Tax Education Council (CTEC).
According to the CTEC, a “tax preparer” includes:
- A person who, for a fee, assists with or prepares tax returns for another person or who assumes final responsibility for completed work on a return on which preliminary work has been done by another person, or who holds himself or herself out as offering those services.
- A corporation, partnership, association, or other entity which persons will have as part of their responsibilities the preparation of data and ultimate signatory authority on tax returns or that holds itself out as offering those services or having that authority.
What are the requirements to be a California Tax Preparer?
The following requirements must be met in order to effectively register as a tax preparer in the state of California:
- Complete 60 hours (45 hours federal and 15 hours state) of qualifying tax education from a CTEC Approved Provider
- Obtain a PTIN (Preparer Tax Identification Number) from the IRS
- Obtain a $5,000 California Tax Preparer Surety Bond
The applicant must register within 18 months from the completion date of the certificate of completion for the training hours. The CTEC also requires a $33 filing fee upon registration.
What is the purpose of a California Tax Preparer Surety Bond?
This surety bond is required as a form of financial security for any potential claims made against the tax preparer. If a client feels they have been financially harmed by the tax preparer, they can make a claim on the bond which the surety company would pay out if settled. Unlike insurance, the bond principal (the tax preparer) must repay the surety company for any losses incurred due to claims.
There are two types of California Tax Preparer Surety Bonds:
- A Tax Preparer Bond for one individual tax preparer, generally written using the individual’s name.
- A Tax Preparer Bond for multiple tax preparers, which is generally written using the name of a business. This bond provides the required bonding for up to 25 individual tax preparers.
Both of the bonds are issued under Section 22250 of the California Business and Profession Code, which notes that:
“a tax preparer shall maintain a bond issued by a surety company admitted to do business in this state for each individual preparing tax returns for another person. The principal sum of the bond shall be five thousand dollars ($5,000).”
Where can I get a California Tax Preparer Surety Bond?
In order to obtain this bond, simply fill out our free online application! One of our licensed agents will contact you within one business day with a quote for the price to obtain your bond (the “premium”). If you choose to move forward after receiving your quote, we will have you sign any necessary paperwork and remit the premium payment, at which time we will ship your bond to you via USPS Priority Mail (with overnight shipping options also available).
Why choose Surety1?
At Surety1, our agents work with over a dozen “A” rated surety markets to ensure we are finding you the lowest price for your bond. We’ve been issuing surety bonds since 2003 and our quality, reliable service has led us to an A+ rating by the Better Business Bureau! Licensed in all 50 states.